Article date: 20 June 2006
The managers of the Norwich UK SpecialSituations fund say market volatility is creating excellentinvestment opportunities.
Richard Buxton, manager of the Norwich UK Special Situations fund,said: "The recent fall in markets has created some excellent buyingopportunities. Whilst the easy money has been made over the lastthree years, this shakeout doesn’t signal the start of a newbear market, but investors are going to have to be much moreselective in order to make money.
“Being unconstrained means that we are able to go anywhereacross the market and invest in situations we believe are special,money-making opportunities. Many large companies are on compellingvaluations, with major stocks like Barclays or Vodafone yieldingover 5%. Favoured midcap names include Carillion, Charter and DanaPetroleum, each of which is seeing the benefits of pricing powerwithin its markets.”
The £200m Norwich UK Special Situations fund has been designedexclusively for Norwich Union and is jointly managed by RichardBuxton, manager of Schroder UK Alpha Plus fund, and Andy Brough,manager of Schroder UK Mid 250 fund.
The fund was launched on 22 May 2006 and is designed to providelong-term outperformance of the FTSE All Share by combining thebest stock ideas from both managers. It will hold between 40 and 60stocks.
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Notes to editors:
About the Norwich UK SpecialSituations fund
Fund size: £200m. Approximate number ofholdings at launch: 50 stocks. IMA sector: UK All Companies.Benchmark: FTSE All Share index. Initial charge: 5%. Revised fundcharges AMC: 1.5%. TER: 1.8%. Standard initial commission: 3%.Standard renewal commission: 0.5%. Investment levels for ISAinvestors: lumps sums £500, regular monthly savings £50.
About the fund managers
The funds will be managed byAndy Brough, manager of the Schroder UK Mid 250 fund, and RichardBuxton, manager of Schroder UK Alpha Plus fund.
Andy Brough’s fund is 1st quartile over 1, 3 and 5 years andhis fund is AAA rated by S&P and OBSR. Richard Buxton’sfund is 1st quartile over 1 and 3 years. It is AA ratedby S&P, and A rated by OBSR.
About Schroders Plc
Schroders is a global assetmanagement company with £122.5 ($211.0 / €178.2) billionunder management as at 31 December 2005. Its clients are majorfinancial institutions including banks and insurance companies,local and public authorities, charities, pension funds, high networth individuals and retail investors.
Its aim is to apply specialist asset management skills in servingthe needs of clients worldwide and in delivering value to ourshareholders. With one of the largest networks of offices of anydedicated asset management company and over 250 portfolio managersand analysts covering the world's investment markets, we offerclients a comprehensive range of products and services.
Further information about Schroders can be found at www.schroders.com. Issued bySchroder Investment Management Ltd, which is authorised andregulated by the Financial Services Authority. For regular updatesby e-mail please register online at www.schroders.com forour alerting service.
About Norwich Union
Norwich Union is theUK’s largest insurer. It is a leading provider of life,pensions and investment products and one of the largest financialadviser (FA) providers. FAs provide over 70% of the company'slong-term savings business in the UK.
Norwich Union is the UK’s largest general insurer with amarket share of around 14%, with a focus on insurance forindividuals and small businesses.
Norwich Union’s news releases and a selection of images areavailable from Aviva's internet press centre at www.aviva.com/media